The Social Security Administration (SSA) is grappling with a record-breaking backlog that has led to over $1 billion in improper payments.
A recent report from the SSA Office of the Inspector General (OIG) reveals that over $1.1 billion in incorrect payments were made to 528,000 benefit recipients. This issue stems from a massive backlog managed by processing centers nationwide. [ ssa.gov]
The OIG’s findings show that while the SSA met its performance goals for pending actions in four of the six fiscal years from 2018 to 2023, delays in processing have resulted in significant financial discrepancies. Underpayments and overpayments occur when a recipient’s benefits are inaccurately calculated, leading to them receiving either too much or too little money.
The report highlights that if cases had been resolved promptly, improper payment amounts would have totaled approximately $534 million. However, due to delays, this amount ballooned to around $756 million after 12 months. By the time of the OIG’s review, the total improper payment amount reached $1.1 billion.
The average processing time for an improper payment in the sample was found to be 698 days. The SSA attributed these delays to unexpected staff reductions, increased workloads, and insufficient overtime funding for processing center actions.
One notable case involved an overpayment of $62,000 to a disability beneficiary. Despite discovering the error in June 2021, the SSA did not begin collecting the overpayment until May 2023, by which time the total overpayment had increased to $53,000. The beneficiary agreed to a partial repayment plan after requesting a waiver, citing financial hardship.
Previous reports have highlighted similar issues, where elderly and disabled recipients faced repayment demands in the tens of thousands of dollars due to miscalculations. The SSA’s new policy requires collecting only 10 percent of a person’s total monthly Social Security benefit for overpayments, rather than the full amount.
SSA Commissioner Martin O’Malley emphasized the importance of fair overpayment policies, stating: “It’s unconscionable that someone would find themselves facing homelessness or unable to pay bills because Social Security withheld their entire payment for recovery of an overpayment.”
In response to inquiries, an SSA spokesperson reiterated that the agency is legally obligated to adjust benefits or recover debts when overpayments are identified to ensure responsibility to taxpayers and the trust funds.
Source:
https://www.newsweek.com/social-security-1-billion-improper-payments-1938508
